Disability Benefit Covered in Group Insurance Plan

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Many corporations offer competitive packages, and that’s even a strategy in hiring and retaining employees. These competitive packages include group insurance to plans that provide individual retirement accounts or traditional registered pension plans, etc. In this article, we will discuss disability benefit covered in group insurance plan.

1. Short term disability
Short term disability has become standard alternative to replace the unemployment insurance benefit due to sickness. It must cover no less than the minimum benefit under EI plan. Normally, it pays no less than 70% of employee pre disable income and it is no taxable. The waiting period has below characteristic
a) 0 day for an accident
b) 7 days due to sickness
and have the benefit of 17 weeks.
Both the waiting period and the benefit period can be adjusted depending on the plan. If workers compensation benefits are provided than short term disability can also be written on a non-occupational basis.

2. Long term disability
Long term disability is designed to replace the income of disabled employees who are seriously injured and who will have a prolonged absence from work. It has a waiting period no more than 120 days, benefit may pay to ages of 65, and with a maximum benefit of 66.70% of pre disable income.
In case of total disability for prolong period of time, government pension plan benefit will be a primary payer, since the long term disability clause in the group plan limits the total benefit that the disable employee can be received, he or she may decide to offset the government plan for saving in long term disability premium.

I hope this information will help. If you need more information, you can read the complete series of the above subject at my home page:

http://lifeanddisabitityinsuranceunderwriter.blogspot.com/
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